Despite Beijing’s growing crackdown on the crypto industry, there are still some signs of life in the People’s Republic about the Bitcoin network and OTC trading.
China strengthened its clamdown on crypto last week in an effort to curb the remaining activities related to digital assets within its borders. The regime has specifically targeted crypto transactions, but as researched by Cointelegraph, the move is nothing new, with at least 19 similar crackdowns in the last decade or so.
Despite the latest move, there are still 135 bitcoin nodes in operation in China, according to BitTorrent, which measures nodes by geographic location. However, this is only 1.21% of the total 11,262 bitcoin nodes spread across the planet. There may be more if they work behind a virtual private network (VPN) and / or use onion routing with Tor that masks the location
A bitcoin node is software that runs a protocol that contains a complete account or part of it that contains transaction information. Distributed and decentralized systems are specifically designed to be completely shut down so that the regime can struggle to operate through these last few hangers-on or tor.
Although it is difficult to keep volume statistics due to its opaque nature, over-the-counter (OTC) trading has also set foot in China, according to various reports, such as the local currency pair.
Local media U blockchain reports that the RMB / USDT pair, which is still offered by major exchanges such as OKEx and Huobi, is trading at a premium. He mentioned the panic sale last week, which has declined since then.
OKEx is currently offering 6.35 Yuan for 1 USDT whereas Greenback’s actual exchange rate is 6.47 according to XE.com.
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OTC businesses operate peer-to-peer which prevents the use of banks or spot markets in centralized exchanges যদিও although many exchanges have OTC desks. According to Coindance, China’s volume has been relatively stable since the beginning of 2020, with about one million million yuan (about US $ 1 million) being traded every week on the P2P platform Localbitcoins.
Bobby Lee, former CEO of BTCC, China’s first crypto exchange, thinks Beijing will target OTC desks in its next crackdown. Earlier this week, he said OTC platforms operated by large exchanges would be shut down or forced to exclude Chinese users. Speaking to Bloomberg on September 29, Lee Added:
“They don’t really want a gap where people can use a digital currency as a vehicle to move assets abroad.”
He followed it up with a prediction that BTC could send the price to ,000 200,000 due to another FOMO rally in the market.